Denmark

Nordtank shares take a dive

Trade in Nordtank shares on the Copenhagen stock exchange was swift in December after the company announced that while turnover had increased as expected in the first half of its financial year, to DKK 346 million from DKK 220 million a year earlier, profits were just DKK 6.8 million compared with DKK 11.3 million in the same period in 1995. Higher development costs associated with Nordtank's 600 kW turbine, lower earnings and higher costs associated with wind plant delivery, together with tougher competition, were Nordtank's reasons for its poorer than expected result. Profit predictions for the 1996/97 financial year have been reduced from DKK 26.2 to DKK 18 million. The news caused the exchange rate of Nordtank shares to fall from 368 to 300 in one day as shareholders sold stock for DKK 7.6 million. Trade continued the following day as DKK 9.6 million in shares changed hands at 295, though Nordtank's fortunes picked up again on the third day with the rate creeping up to 310. The company, however, had lost 20% of its stock market value. Nordtank shares were first floated at 350.

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